Birmingham business leaders have backed today’s decision by the Bank of England’s Monetary Policy Committee to keep interest rates at 0.5 per cent for the 18th consecutive month and the money supply unchanged at £200 billion.
Will Rogers, policy adviser at the Birmingham Chamber of Commerce and Industry, said: “Shaky business confidence, looming public sector cuts and falling consumer confidence continue to raise the risks of a double dip recession.
“Despite the fact that the UK economy has risen by a far better than expected 1.2 per cent in the second quarter, growth is expected to slow in the remaining two quarters of 2010.
“While the pound is weak and therefore creating good export opportunities, global demand is still relatively low.
“The time to increase interest rates will be when the recovery has firmly established itself.”